Pricing and packaging managed services is a well known pain point for IT service providers. One approach managed service providers (MSPs) take is to package their offerings into “bundles” as opposed to simply allowing customers to choose services à la carte. Some prefer this approach because it makes pricing services simple and straightforward. Others say that it helps them differentiate their business from competitors.
Bundling services gives MSPs an opportunity to demonstrate the value of their services in a straightforward way. An MSP might have tiers of services at different price points. Others might offer a single all inclusive bundle sold as “premium” service. However, some say an à la carte strategy is preferable, because it gives them more flexibility when serving customers. Many use some combination of both.
The approach you take will depend on your own specific business goals. In this eBook, you’ll learn the pros and cons of bundling services, look at different approaches to bundling, and get practical advice from successful MSPs.
- What’s in a Bundle? Well, a bundle is kind of whatever you want it to be. For example, the industry an MSP targets - such as Finance or Legal - could dictate the services within his/ her bundle. Or an MSP could bundle services based on related IT functions, such as storage, backup, and disaster recovery. An MSP focused on smaller businesses or startups might include the installation, monitoring, and management of all technology in their bundled offerings.
- Bundling Benefits: With à la carte pricing, customers frequently look for ways to cut costs by evaluating each service separately rather than looking at the big picture. Bundling services can help customers quickly understand how they’ll benefit from your service, without needing to evaluate each piece.
- Value Perception: Regardless of the approach you take, you need to be able to quickly and effectively communicate the value of your services. For some, bundling and standardization is key to delivering excellent service. For others, giving their customers a greater level of flexibility and working with the technology already have in place delivers value. As with most choices, it depends on what you are trying to accomplish as a business.
Ultimately, the decision to bundle services isn’t black and white. Bundled, À la carte—why not offer some combination of both? Using the car wash analogy again, what’s stopping you from scooping up a $5 customer and converting them to a $10 customer over time? Whatever approach you take, it’s all about communicating the value of your services. Finally, remember to present your services in a way that is easy for customers and prospects to understand. If you choose to bundle services, be certain to clearly define what is and what is not included in each packaged offering.
Bonus - Grab This: For MSPs, the decision to bundle services isn’t black and white. Bundled, a la carte, a combo of both - which one is right for your business? Find out! In Bundled Services Made MSPeasy, we uncover the pricing and packaging strategies for industry-leading MSPs so you can make an informed decision based on your needs. Check it out today.
Eric Torres is channel development manager at Datto Inc. Read more Datto blogs here.
